If You Want a Larger Tax Refund This Year, Don't Miss These Common Tax Breaks and Deductions
In order to get the biggest tax refund, you need to claim all the tax credits and deductions you are eligible to receive
Are you looking for the biggest tax refund you can get this year? Well, you're not alone. But too many people miss out on some common tax deductions every year. But you don't have to be one of them. Review the following tax deductions to see if you might be missing out on a larger tax refund. And don't despair if you see something you may have missed last year. You can always amend last year's taxes.
personal property taxes
If you bought a new car, house or even a boat, the state and local personal property taxes may be deductible. Mortgage interest statements typically include the amount of personal property taxes paid for your home, but you have to add in any other personal property taxes you may have paid.
Have you had to go to the doctor a lot this year? If your medical expenses exceed a certain amount, you may be able to deduct these payments on your federal income taxes. You'll only get this deduction if you itemize, however, and expenses need to typically exceed a certain percentage of your adjusted gross income.
Giving to charity feels great, especially when others need the financial support. These donations to charity lower your taxable income throughout the year. Gather all of your donation receipts together and claim a tax deduction. Did you know that donations or memberships to the North Carolina Consumers Council are tax deductible? If you're looking for a way to do some good and get a tax deduction for next year, consider helping us out.
Did you have to move because of a new job? You may qualify for a tax deduction for your moving expenses. But you do have to meet distance and time guidelines set up by the Internal Revenue Service (IRS) in order to qualify. So your new job has to be at least 50 miles more from your old home than your old job.
If you refinanced a mortgage and paid points, discount points, loan origination fees, maximum loan charges or loan discounts, you may be able to claim it as a tax deduction. You can also claim this deduction if you paid this fee on a new mortgage.
Were you affected by a weather-related disaster or some other unforeseen event, such as fire or theft? If so, you may be able to deduct the casualty loss on your taxes. The IRS allows for deductions if you have not been reimbursed by your insurance company.
home office expenses
If you are self-employed or work at home, you can claim certain home office deductions as long as the space is used only and regularly for business. You can deduct portions of your home expenses, such as the mortgage, rent, interest, taxes and utilities based upon the portion of the home you use for your home office.
student loan interest
Student loan interest sometimes gets missed, so be sure to claim it. Don't forget any of the student loan interest paid by mom and dad! Even if they paid the loan, the IRS treats it as money they gave to you in order to pay the loan.
Most of us think about children when we consider dependents. But do you pay a significant portion of the living expenses for someone else, such as another family member or even an aging parent? You may be able to claim the person as a dependent.
Did you pay a lot of state sales tax last year? You can qualify for a tax deduction if the amount of sales tax paid exceeds a certain amount. You'll have to itemize, though.
job search expenses
If your job search expenses exceed 2 percent of your adjusted gross income, you can deduct qualifying expenses over that amount. Expenses can add up, which can include mileage to interviews, costs of printing and mailing resumes, etc.
tax preparation fees
Did you pay $150 to a tax professional to prepare your taxes last year. Maybe you paid $89 to purchase TurboTax? You can deduct any tax preparation fees and books.